The Competition and Markets Authority (CMA) has started examining Carlsberg’s planned £3.3bn takeover of Britvic.
The regulator has issued a preliminary ‘invitation to comment’ to allow interested parties to submit their initial views on the transaction’s potential impact on competition in the UK.
The move is the first part of the CMA’s “information-gathering process” around the deal before formally commencing a phase 1 investigation.
Carlsberg has previously stated that it hopes to complete the transaction in the first quarter of 2025, subject to regulatory clearance. Last month, the deal moved a step closer after Britvic’s shareholders voted in favour of the deal.
The takeover will allow Carlsberg to expand its drinks bottling operations in Britain. As well as producing its own brands, Britvic is PepsiCo’s bottler in the UK. Carlsberg is PepsiCo’s bottler in Norway, Sweden, Switzerland, and some countries in Asia.
Carlsberg has stated that its intention is to “accelerate commercial and supply chain investments in Britvic, driving the future growth trajectory of the business”. It noted that buying Britvic would take the brewer’s relationship with PepsiCo “to the next level”.
The deal will see the Danish brewer rolling its Carlsberg Marston’s Brewing Company (CMBC) business into that of Britvic to create a single integrated beverage company in the UK called Carlsberg Britvic. It will be led by a management team comprised of individuals from Carlsberg, CMBC, and Britvic.
